A businessman has been allowed to continue a £20 million negligence counterclaim against a City law firm, following a High Court ruling concerning the firm’s conduct in connection with an earlier legal dispute.
The case arose after the law firm brought proceedings seeking payment of approximately £194,000 in outstanding legal fees. In response, the businessman brought a substantial counterclaim, alleging that the firm had acted negligently and that its conduct had caused significant financial losses.
The High Court’s decision allows the negligence allegations to continue as part of the wider proceedings. The ruling does not, however, mean that the allegations have been proven or that the businessman has established an entitlement to the £20 million claimed.
Professional negligence disputes involving solicitors can be particularly complex because they may require the court to consider the scope of the solicitor’s retainer, the standard of professional care expected, whether there was a breach of duty and whether any alleged breach caused the losses being claimed.
The case highlights the importance for businesses and individuals of understanding the terms of their legal engagement and keeping clear records of instructions, advice and correspondence throughout a significant legal matter.
Where concerns arise about the quality of professional legal services or advice, obtaining an early assessment can help establish whether there may be grounds for a professional negligence claim and what remedies may be available.
Aldwych Legal advises businesses and individuals on commercial disputes, professional negligence and other complex legal matters. Our team provides practical and commercially focused advice designed to help clients understand their position and determine the most appropriate way forward.
